A collection of news and insights about our firm and developments in the law, finance and insolvency industries
Summary A statutory demand for payment of debt (statutory demand) is an important tool for creditors in getting payment from reluctant debtors and/or pushing for insolvency; There are strict requirements that a statutory demand must meet in order to be enforceable and there are significant risks to getting it wrong. Creditors need to consider the […]
Summary: What is an insolvent trading claim? An insolvent trading claim is an action for breach of a director’s duties. The prohibition against insolvent trading is a duty of all company directors that is set out in section 588G of the Corporations Act. It is a cause of action that liquidators have against company directors […]
In September 2017, a new safe harbour from insolvent trading was introduced to help company directors undertake informal restructures during insolvency. It is the only carve-out to the duty of company directors to cease trading when a company is insolvent. The new safe harbour from insolvent trading represents a significant watering down of the insolvent […]
There are two circumstances where a liquidator can be voluntarily appointed by a company. Both of these appointments are made by special resolution of a company’s members and can be distinguished by the appointment to a solvent or insolvent company. A voluntary liquidator appointed to a solvent company is made when a company resolves for […]
Summary The writer’s view is that 95% of voluntary administrations fail to meet the stated objective of the regime, being saving goodwill value of insolvent businesses, saving jobs and repaying a decent percentage of unsecured creditor debts (in double digits). Unfortunately, there is currently no conclusive empirical evidence to prove or disprove this proposition. This […]
What is an asset protection trust? Any form of trust that provides for assets to be held on a discretionary basis under the control of a trustee for the benefit of the beneficiaries. Where are the tax havens? These offshore jurisdictions prefer to call themselves Offshore Financial Centers (OFCs) and they may be broken up […]
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